With Bitcoin Set To Use More Power Than Electric Vehicles, Here’s How Much Mining One Coin Costs
Back in November, we posed the following question with regard to whether, given how critical Bitcoin most assuredly is to the future of humanity, it might make sense to simply leave entire countries in the dark in service of mining more make-believe internet money:
It might make sense to just cut off Ireland, Oman, Bahrain, and the host of other “superfluous” countries highlighted in orange below:
The countries highlighted in orange use less electricity than Bitcoin's mining network.
One
Given that you can buy custom processors for mining bitcoin at a cost of just $3000-$5000 dollars, you are at breakeven once you have mined your first coin. After that you are getting well over a 100% return on every dollar spent on the mining operation.
Gold sells for only a small premium above mining/minting costs by comparison.
In the end, a Bitcoin should never sell for more than about 10% over the cost of mining based on the least cost miner. That would place a “fair” value for the make believe money at about $3300 per coin. So yes, slightly overvalued currently.
That may be true now, but don’t you think mining is going to be dominated by large enterprises that setup shop next to cheap electric sources.
I would think that aluminum producers would be well situated to add bitcoin mining to their operations.
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Refer to the map at top of article — 99.9% of Africa is orange, indicating almost no electricity is used there — ask trump if that is because they don’t have electricity to their huts?
Haha funny this:..